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U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 49377 / March 9, 2004

INVESTMENT ADVISERS ACT OF 1940 Release No. 2220 / March 9, 2004

Admin. Proc. File No. 3-11424


In the Matter of

Charles B. Spadoni



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SEC INSTITUTES ADMINISTRATIVE PROCEEDINGS AGAINST FORMER GENERAL COUNSEL TO BOSTON INVESTMENT FIRM

The Commission announced today that it has instituted public administrative proceedings against Charles B. Spadoni pursuant to Section 15(b) of the Securities Exchange Act of 1934 or Section 203(f) of the Investment Advisers Act of 1940.

In the Order Instituting Administrative Proceedings ("Order"), the Division of Enforcement alleges that Spadoni, who served as vice-president and general counsel to Triumph Capital Group, Inc. ("Triumph"), a Boston investment firm, was indicted on October 10, 2000, along with others, for their roles in a scheme involving investment of Connecticut state pension fund assets during 1998 by the then-Treasurer of Connecticut (the "Treasurer"). The case was filed in the United States District Court for the District of Connecticut, and is entitled U.S. v. Triumph Capital Group, Inc. et al., Criminal No. 3:00CR-217 (EBB). Among other things, the indictment charged that Spadoni and others provided consulting contracts valued at approximately $2 million to two close associates of the Treasurer as consideration for the Treasurer's decision to increase the amount of the State of Connecticut pension fund investment with one of Triumph's private equity funds, Triumph Connecticut II. The indictment also charged Spadoni and one other party with obstruction of justice concerning Spadoni's destruction of documents in and after June 1999 relevant to a grand jury investigation concerning the investment by the State of Connecticut pension fund.

The Order also alleges that on July 16, 2003, a jury in the criminal action returned a guilty verdict against Spadoni. The verdict found Spadoni guilty of: (a) one count of racketeering in violation of 18 U.S.C. 1962(c) concerning acts of bribery and obstruction of justice; (b) one count of racketeering conspiracy in violation of 18 U.S.C. 1962(d) concerning acts of bribery and obstruction of justice; (c) one count of theft/bribery concerning programs receiving federal funds in violation of 18 U.S.C. 666(a)(2) and 2; (d) four counts of wire fraud/theft of honest services in violation of 18 U.S.C. 1343, 1436, and 2; and (e) one count of obstruction of justice in violation of 18 U.S.C. 1503.

A hearing will be held before an administrative law judge to determine what, if any, remedial action is appropriate and in the public interest. The Commission directed that an administrative law judge shall issue an initial decision in this matter within 210 days from the date of service of the Order Instituting Proceedings.


http://www.sec.gov/litigation/admin/34-49377.htm


Modified: 03/09/2004